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AP® Macroeconomics

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Moderate

Consumer Confidence and Consumption

APMACR-QDEEBL

The news media reports widely that consumer confidence is on the rise. We can therefore expect that aggregate demand and national consumption will

A

increase as consumer spending begins to rise.

B

decline as consumer spending begins to fall.

C

be uncertain, because much of the public does not trust the media.

D

remain constant, because households will wait to adjust their spending depending on their particular household budgets.

E

remain constant, because consumption is basically dependent on what the Fed allows the money supply to become.